Our VAT Assist product works like a traditional Hire Purchase (HP) loan, the only difference being that you can defer the equivalent VAT amount to your third instalment. Get the van now, pay the VAT later.
VAT Assist works like a traditional HP loan, the only difference being that the customer will not generally need to pay a deposit (although they can). The equivalent of the VAT due is then taken on the 3rd instalment as part of the payment plan.
Available to VAT registered business customers only.
When you have paid off the finance agreement, as well as the option to purchase fee, the vehicle becomes yours.
You can also enjoy a one month payment holiday on your agreement. Interest is calculated from the day your agreement starts.
Pros & Cons
Flexible repayment terms (from one to five years) to help suit your monthly budget
You do not have to pay the VAT deposit on this product
Fixed interest rates, so you know exactly what you’re paying every month for the length of the term
Balloon payment for VAT equivalent amount is due on the 3rd instalment instead of paying the VAT upfront, which should ensure the customer’s quarterly VAT rebate has been received
You don’t own the vehicle until you’ve made your final payment, which means the vehicle could be repossessed if you do not maintain contractual payments
You cannot sell or give the vehicle away until you have paid all of the repayments under the finance agreement
Available to VAT registered business customers only